Bad customer service costing banks

07 June 2006
Poor levels of customer service have led to up to half of savings account customers switching their provider, according to research from Moneyfacts.

A bad reputation can be equally harmful for banks when they wish to cling on to customer loyalty. Just under half (49 per cent) of respondents said that bad press had stopped them from taking out a credit card from a particular bank or lender.

"Customer service is something that doesn't appear to get the focus it once did, perhaps because providers are concentrating on the provision of internet-based accounts," said Emma Butler, editor for

"However, the results of the latest survey only goes to emphasise that consumers expect to receive a decent level of customer service when visiting a branch of their bank or building society or telephoning a call centre."

Almost two-thirds (62 per cent) also said that they did not believe their mortgage provider would help them if they found themselves with financial problems, a statistic which worries Ms Butler.

"[This] shows that consumers do not think their bank, building society or lender treats them as a valued client," she argued.

"If consumers have a query or problem with their account, and receive the relevant help, this will go a long way to making them feel that they are a valued customer, which in turn should make them more likely to buy further financial products from their particular bank or building society."

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